MONDAY, MAY 21, 1923. THE FARMERS' CONFERENCE.

Hawera & Normanby Star, Volume XLII, Issue XLII, 21 May 1923, Page 4

MONDAY, MAY 21, 1923. THE FARMERS' CONFERENCE.

♦ ' — The annual conference of the Farmers' Union, which opened in Hawera this afternoon, meets at a time when important questions are facing the farming community. The last few years j have brought a boom in farming lands and stock, witli remarkably high prices for produce, followed by a depression of unprecedented magnitude with grave effects upon the primary producers of the Dominion. One could not imagine a more difficult period or one so full of danger to producers. In the boom years all looked so rosy, and it is not to be wondered at that so many people, lacking knowledge of economics, were encouraged by the prospects at the time to do things which led in many cases to disaster. Trading in farm lands ana stock was so attractive that few could resist "it, never thinking that in many cases they were becoming entangled in commitments which would make escape most difficult and heavy losses inevitable. It was sad to hear of ao many eases of real hardship and suffering in the district when the crash came, but it was gratifying to find that in response to our appeal and that of other mortgagees in many cases met mortgagor^ and made generous adjustments which enabled the farmers affected to remain on the farms into "which they had put all their money and kard work. It has, however, been a great struggle for most of them, and even now some are not out of the wood, and we are told that there are cases in which mortgagees could help very much by meeting the mortgagors and giving them relief. It is, of course, a matter for the parties concerned, and we feel sure that where those who purchased in the boom period are still in great difficulties mortgagees will meet them a« far as possible. The difficult period is passing away and the district will come through it in time. The important questions for farmers at the present time are mainly those connected with finance. The period through which farmers have been passing has left them powerless to provide nearly as much as is needed upon the land, and in many cases farms require considerable sums of money spent upon them to make them fully productive, and fanners find it hard to secure the necesj sary money. Whether or not agricultural banks would be a success in this country we are not prepared to answer, though we think that every care should be taken, before launching upon a j scheme, that evidence for and against such banks is taken fully into consideration. It is true that in Europe these banks have been operated successfully and with benefit to the farmers, but are conditions in New Zealand and are our farming methods suitable for the successful operation of such institutions here? The'conservative policy o? the existing banks did not prevent the boom and depression, but they did have an influence in steadying the movements. Some people think that had the banks been much more conservative the boom would not have reached such i. a height and the collapse would not have been so serious. But whether or not that view is correct it must be said in fairness that leading bankers spoke Tory plainly when the boom began of ' the serious dangers to be expected and j advised great caution. Had the warnings been heeded many people would have escaped from the position in which they unfortunately placed themselves. Agricultural banks may prove excellent institutions for farmers, but whatever is done the greatest care should be taken so that the farmers will never again fall into such a diffij suit position gs that of the last two ,Or three years. Financial questions are j fall of difficulties, and often unless erery factor is weighed there arise troubles which are not 'foreseen when a scheme is launched. We are not writing these thoughts as a -criticism I of any proposals that may be brought forward, but in order to point out that i such an important question merits very careful analysis and consideration. The : conference will have other matters to diaeuss besides finance, and we hope | ttat the gathering will be productive of good results and lead to a renewal «f interest in the union, which is very much needed if its work is to be effective.